Hong Kong's tax system is simple and predictable.
Corporate profits tax rate is 17.5%.
Personal tax is also among the lowest in the world at about 15.5% (the rate will be increased to 16% in assessment year 2004/05). And there are no hidden "extras."
Only income and profits derived direcly from Hong Kong are subject to tax;
There is no tax on capital gains, dividends or interest;
Generous capital allowance and depreciation regulations;
Hong Kong has no sales tax or Value Added Tax.